I’m picturing something where a small pool is running as a proxy for larger pool? That would be a bit weird since the payouts wouldn’t line up, unless you kept all the stats / leaderboards in sync between them, and at that point the “small” pool would appear to be the same size as the main pool.
user(s) plots → pool → another pool (bigger or a higher paying out %)
So in the second example the piggybacking one, the pool would pool into another pool which would mess up overall stats and they snatch an exta % on payouts from the one they pool into. End result would be that the end user gets less not knowing it’s piggybacking by the pool used.
Downside is besides lower payment, if the pool folds where the smaller one pools into, they fold also… so a bit of a domino effect that would hit a lot of people unaware their pool , pools into another one.
This is actually something that happened on other crypto platforms regarding pools , not exactly the same as what I try to explain above but similar.
eg. one or another crypto pool accepts crypto from users, claiming to give x % APY yet they pool into another pool that gives a bigger % , this has been seen and most likely still happening with pools. The end pool is usually going for the lending programs at various exchanges and ofcourse pays a lot more out if you go direct with them than with other pools.
Seen this for a lot of different cryptocurrencies and mainly PoW not PoS coins
Does this all make sense, or am I explaining it wrong/to difficult